- Income tax and GST compliance deadlines fall on March 31 for various filings and checks
- Form 13 for reduced TDS rates should be applied before the new financial year begins
- TDS return for Q3 2025 has an extended filing deadline of March 31
A host of tax-related compliances under both the income tax and GST regimes are due by March 31.
If you don't meet the deadline, you may lose associated benefits and face financial consequences, including penalties, interest, and late filing fees.
Income Tax Tasks To Do Before March 31 Deadline
Application for a reduced or zero TDS certificate (Form 13): This is not a compulsory deadline tied to March-end, but tax experts recommend initiating the process before the start of the next financial year. This ensures the correct withholding rate is applied from April without disruption.
Filing a revised return using ITR-U, if required: Where income has not been reported, a return has been missed, or tax has been calculated incorrectly, taxpayers can opt for ITR-U to make corrections. While this attracts extra tax outgo and penalties, not addressing such discrepancies may invite closer examination from the tax department and possibly harsher consequences.
Deadline for filing TDS return for Q3 2025: Authorities have extended the due date for submitting the TDS return for the third quarter of 2025 to March 31.
Planning for capital gains and maximising loss set-offs: Individuals should assess whether to sell or retain capital investments, ensure proper utilisation of brought-forward losses, and take advantage of applicable exemption rules within the required deadlines.
Depreciation eligibility and asset usage timelines: Businesses must ensure that capital assets are not only acquired but also installed and put into use by March 31 in order to claim depreciation for the year, including additional depreciation benefits where applicable.
GST Tasks To Do Before March 31 Deadline
GST return and book reconciliation checks: Businesses need to undertake a comprehensive review to ensure consistency between GST submissions and financial records. Key reconciliations include GSTR-1 with sales data, GSTR-3B with accounting books, and GSTR-2B with input tax credit documentation, along with scrutiny of advances, credit/debit notes, and related adjustments.
Scrutiny and optimisation of input tax credit (ITC): A detailed examination of ITC claims is recommended to verify eligibility, maintain adequate documentation, and ensure adherence to CGST Act requirements. Credits falling under Section 17(5) that are not permissible should be detected and appropriately reversed if claimed in error.
Letter of Undertaking (LUT) for the 2026–27 financial year: Companies engaged in exports or SEZ supplies without IGST payment must file the LUT for FY 2026–27 before initiating such supplies in the new fiscal cycle. Ensuring eligibility and uninterrupted validity is crucial, as any lapse or delay could lead to IGST liability on exports and place pressure on cash flows.
Evaluating tax positions and litigation risk: Taxpayers should reassess key positions taken throughout the year, including classification, valuation, and exemption claims. Areas with potential for legal challenge must be flagged, with appropriate provisions considered, and supporting reliance placed on judicial decisions and CBIC circulars where relevant.
Review of supplier compliance and verification checks: Vendor adherence remains crucial for claiming input tax credit. Companies should closely examine whether suppliers have accurately reported sales in GSTR-1 and properly settled tax obligations in their GSTR-3B filings.
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